Independent Marketers Hike Petrol Prices, Give Reasons as Supply Improves
- Independent petroleum product marketers have given reasons why petrol sells for higher at filling stations
- The marketers say that due to the system failure at NNPC, members now resort to buying the product in the open market
- The independent marketers reportedly sell petrol at an average of N750 per litre as against the N605 major marketers sell the product
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Following the lingering fuel scarcity at petrol stations, marketers are now setting pump prices at higher rates nationwide.
Findings in Lagos and Abuja indicate that the margin between petrol station prices owned by major marketers and independent marketers is widening. Major marketers maintain relatively stable prices, while independent operators have adjusted their prices upwards by 20 to 30%.
Source: UGC
Independent marketers hike petrol prices
While major marketers sell at an average of N605 per litre, independent marketers peg their prices at an average of N730 per litre.
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Independent marketers have blamed the situation on a system breakdown in the Nigerian National Petroleum Company Limited (NNPCL), hinting at robust Business-to-Business transactions among the marketers favouring the major marketers.
They stated that independent marketers no longer have direct access to imported petroleum products at the depots at the stipulated price.
Vanguard reports that the Independent Petroleum Marketers Association of Nigeria (IPMAN) explained that petrol prices are higher at their stations because members purchase their products from the open market.
NNPC's system breakdown disrupts supplies
The report quoted IPMAN’s Public Relations Officer, Chinedu Ukadike, as saying that due to the breakdown of NNPC’s retail portal, members have been unable to secure products from the company.
He pointed out that independent marketers cannot sell below ex-depot price without adding logistics and wage costs.
Ukadike said:
“We source our product from the open market. We buy from tank farm owners, major marketers, and depot owners. We have been unable to get products from the NNPC for some time now because the portal is down. It is undergoing an upgrade, and we have not had access to it. Without access, you cannot get a product.
Petrol supply improves but prices remain high
A market survey by Legit.ng shows that supply has improved as most filling stations report receiving the product.
Further findings indicate that petrol stations across Lagos now have the product but are yet to reduce the prices.
A visit to most filling stations shows fewer lines at most petrol stations.
A motorist who identified himself as Olatunde told Legit.ng that the product is available but that the stations still sell at higher costs.
“As of this morning, I bought petrol at N850 per litre at one of the stations along the Iju-Ishaga area of Lagos. There are no queues but the cost is still high compared to the N630 per litre they previously sold the product.,” he said.
Petrol hits N2,000 per litre at border towns
An earlier report by Legit.ng says that petrol started selling for N2,000 per litre in border communities in Ogun State and other areas.
Residents report that the ongoing petrol scarcity has worsened their plights as they battle the ban on selling petroleum products in border areas within a 20-kilometre radius.
In 2019, former President Muhammadu Buhari prohibited the supply of petroleum products to Nigerians living within 20 kilometres of Nigeria’s borders with neighbouring countries to forestall the diversion of subsidised petrol.
The Buhari administration later granted waivers to some filing stations to sell petrol in the border areas. Still, the number was said to be insignificant in easing the population's plight.
According to reports, many residents rely solely on the black market to buy petrol in the border areas, which sell at exorbitant prices.
Oil marketers set a date to end scarcity
Legit.ng previously reported that filling stations across Nigeria adjusted their pump prices following the scarcity of petrol, which has entered the second week.
Legit.ng findings show that petrol stations in Lagos, Abuja, Port Harcourt, and Kano have adjusted their prices upwards due to the scarcity.
Most petrol stations selling the product in Lagos adjusted their pump prices to N750 per litre from the N630 they sold the product before the scarcity began.
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Source: Legit.ng
